What is distribution?

Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bon

givi [52]

Answer:

A. Marginal tax rate is 34.02%

B. Marginal tax rate is 33.00%

Step by Step Explanation:

A. If Campbell earns an additional $15,000 of taxable income, her marginal tax rate on the income is 34.02 percent.

Marginal tax rate=Tax/Taxable income

($120,709.05-$115,606.25)=$5,102.8

($415,000 − $400,000)=$15,000

$5102.8/$15,000= 3.401

3.401 ×100= 34.02%

b.If Campbell instead had $15,000 of additional tax deductions, her marginal tax rate on the deductions would be 33.00 percent.

Marginal tax rate=Tax/Taxable income

($110,656.25-$115,606.25)= $4,950

($385,000 -$400,000)= $15,000

$4,950/$42,000= 0.33

0.33×100= 33.00%

5 0

3 years ago

All my points will go to the cutest girl add a pic

irina1246 [14]

.........................

4 0

3 years ago

Read 2 more answers

On January 1, 2014, Fishbone Corporation sold a building that cost $260,300 and that had accumulated depreciation of $105,700 on

Drupady [299]

Answer:

1. The amount of gain should be reported: $37,983

2. The answer is $291,131

Explanation:

1.

The actual consideration's receipt is the present value of the cash flow from the note which is calculated as 249,400 / ( 1+9%)^3 = $192,582.5599

The Net book value of asset = Original cost - accumulated depreciation = 260,300 - 105,700 = $154,600

=> Gain on sales = $192,582.5599 - $154,600 = $37,983

2.

To determine the amount needs to paid out for the purchase, determine the price per stock first.

The stock price will be determined as the present value of cash flows from bonds, discounted at yield to maturity.

We have: Annual coupon payment = 1,000 x 9% = $90

=> Stock price = (90/11%) x ( 1 - 1.11^-10) + 1,000/1.11^10 = 882.21536

=> Amount need to be paid for the purchase = stock price x bond purchased = 882.21536 x 330 = $291,131

6 0

3 years ago

Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a p

Ivan

Answer:

$34,000

Explanation:

Accounting profit = Total revenue - Explicit costs

i.e Total revenue = $50,000

Explicit costs = $12,000 + $1,000 + $3,000 = $16,000

Therefore; $50,000 - $16,000 = $34,000.

6 0

3 years ago

A new American graduate is contemplating buying a

mash [69]

Answer:

The best option is to buy Japanese Car.

Explanation:

Fuel usage per year is 150000/ 8 = 18750 miles per year

Fuel cost (year 1 -8) = $3.0, $3.06, $3.12, $3.18, $3.25, $3.312, $3.38, $3.5

Japanese Car:

Fuel usage 18750 / 23 = 815 * $3 = $2446

Fuel charges (year 1 -8) = $2445, $2494, $2623, $2758. $2900, $3050, $3207, $3372

Repair Cost (year 1 - 8) = $700, $721, $742, $764, $787, $811, $835, $860

Insurance cost (Year 1 - 8) = $700, $714, $728, $742, $757, $772, $788, $804

Present value of cost at 5% = 24674.07

Cost of car is $30,000

Total cost = $54674.07

American Car:

Cost $35,000

Fuel usage 18750/20 = 937.5 * $3 per gallon = $2812.5.

Fuel charges (year 1 -8) = $2812, $2913, $2986, $3011. $3098, $3124, $3176, $3208

Repair Cost (year 1 - 8) = $800, $894, $921, $978, $1109, $1176, $1207, $1301

Insurance cost (Year 1 - 8) = $800, $827, $876, $898, $908, $932, $954, $934

Present value of cost at 5% = 25302.18

Cost of car is $35,000

Total cost = $60302.

German Car:

Cost = $45,000

Fuel usage 18750 / 21 = 892 * $3 = $2678

Fuel charges (year 1 -8) = $2679, $2732, $2786, $2842. $2899, $2987, $3077, $3171

Repair Cost (year 1 - 8) = $1000, $1040, $1081, $1124, $1169, $1216, $1265, $1316

Insurance cost (Year 1 - 8) = $850, $867, $884, $902, $920, $938, $957, $976

Present value of cost at 5% = 27105.73

Cost of car is $45,000

Total cost = $72105.

8 0

4 years ago